Calculate the amount at a rate of rs 1200 per month.with effect from 1st august 2000 till 1st april 2013 at a rate of 11% interest per annum
To calculate the amount over a given period with a specific interest rate, you can use the formula for compound interest:
A = P(1 + r/n)^(nt)
Where:
A = the final amount
P = the principal amount (initial deposit or starting amount)
r = the annual interest rate (in decimal form)
n = the number of times that interest is compounded per year
t = the number of years
In this case, the principal amount (P) is Rs 1200 per month, and the interest rate (r) is 11% per annum. We need to calculate the amount from 1st August 2000 to 1st April 2013.
First, we need to determine the number of months and years between these two dates:
Number of months: (2013 - 2000) * 12 = 156 months
Number of years: 156 / 12 = 13 years
Now, let's calculate the final amount:
1. Convert the monthly interest rate to an annual interest rate:
Monthly interest rate = (11% / 12 months) = 0.917%
Annual interest rate = 0.917% * 12 = 11%
2. Apply the compound interest formula:
A = 1200 * (1 + 0.11/12)^(12*13)
Simplifying the equation:
A = 1200 * (1.00917)^(156)
A = 1200 * (3.172656)
The final amount (A) is approximately Rs 3,807.19.
Therefore, the amount at a rate of Rs 1200 per month, with an interest rate of 11% per annum, from 1st August 2000 to 1st April 2013 is approximately Rs 3,807.19.